Company Regulations as the Solution to Industrial…
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Company Regulations as the Solution to Industrial Dispute Resolution

Industrial disputes are often caused by misinterpretation of the regulations governing labor relations between companies and workers. However, given how complex the differences in industrial relations between each business field are, even the laws and regulations that have been passed by the government do not seem to be enough to mediate disputes that arise between companies and workers. Therefore, company regulations are here to be a solution for entrepreneurs to clarify the regulations that apply in their companies.

When Are Company Regulations Should Be Made?

The obligation to form company regulations for the first time arises when the company reaches 10 (ten) manpower. Ideally, before the company reaches 10 (ten) manpower, the company's regulations have been passed by government agencies engaged in related fields.

How Are Company Regulations Made?

Company regulations that at least contain:

  1. rights and obligations of the company;

  2. rights and obligations of the workers;

  3. terms of employment;

  4. corporate rules of conduct;

  5. the period of the company regulation; 

  6. matters that are further extension regulated stipulation in the regulation;

made by considering the advice and consideration of the workers’ representatives in the company. Ideally, each work unit democratically elects these worker representatives to provide or not provide input to the company's management at the time the company's regulations are made. In line with the information, we conveyed before, ideally, company regulations are made before the workers in the company reach 10 (ten) people, so that suggestions and considerations from existing units are collected more efficiently.

After that, the company regulation draft can be sent to the relevant government agencies to be ratified so that it can be valid in the company for 2 (two) years.

What Are the Important Points in the Preparation of Company Regulations?

In our opinion, the important points that need to be considered in the preparation of company regulations are stipulations related to the extension of the provisions regulated in the regulations. For example, related to the procedures for taking leave, warning letters procedure, strikes, lockout, and so on. In addition, it is also necessary to pay attention to the regulation about the classes of positions and organizational structures that apply within the company. 

The existence of good company regulations can resolve industrial disputes before they arise. Therefore, it is important for us to provide information related to company regulations. If there are any further questions related to company regulations, please do not hesitate to contact us at our email address.


Raynold Rachwell, S.H.

Suria Nataadmadja & Associates Law Firm

Advocates & Legal Consultants